Over the air update of payment transaction data stored in secure memory

ABSTRACT

A system, apparatus, and method for processing payment transactions that are conducted using a mobile device that includes a contactless element, such as an integrated circuit chip. The invention enables the updating, correction or synchronization of transaction data maintained by an Issuer with that stored on the device. This is accomplished by using a wireless (cellular) network as a data communication channel for data provided by an Issuer to the mobile device, and is particularly advantageous in circumstances in which the contactless element is not presently capable of communication with a device reader or point of sale terminal that uses a near field communications mechanism. Data transferred between the mobile device and Issuer may be encrypted and decrypted to provide additional security and protect the data from being accessed by other users or applications. If encryption keys are used for the encryption and decryption processes, they may be distributed by a key distribution server or other suitable entity to a mobile gateway which participates in the data encryption and decryption operations.

CROSS REFERENCE TO RELATED APPLICATIONS

This application claims priority from U.S. Provisional PatentApplication No. 61/099,060, entitled “Contactless Phone With SecretData”, filed Sep. 22, 2008, the contents of which is hereby incorporatedin its entirety by reference for all purposes.

NAMES OF PARTIES TO A JOINT RESEARCH AGREEMENT

Visa International Service Association, Inc. and Visa U.S.A. are partiesto a Joint Research Agreement.

BACKGROUND

Embodiments of the present invention are directed to systems,apparatuses and methods for the processing of payment transactions, andmore specifically, to a system and associated apparatus and method forprocessing a transaction that includes synchronizing transaction datastored in a device having a contactless element with transaction datamaintained by an Issuer. The present invention is further directed tosystems, apparatuses, and methods for using a contactless element suchas an integrated circuit chip embedded in a wireless mobile device toenable payment transactions.

Consumer payment devices are used by millions of people worldwide tofacilitate various types of commercial transactions. In a typicaltransaction involving the purchase of a product or service at a merchantlocation, the payment device is presented at a point of sale terminal(“POS terminal”) located at a merchant's place of business. The POSterminal may be a card reader or similar device that is capable ofaccessing data stored on the payment device, where this data may includeidentification or authentication data, for example. Data read from thepayment device is provided to the merchant's transaction processingsystem and then to the Acquirer, which is typically a bank or otherinstitution that manages the merchant's account. The data provided tothe Acquirer may then be provided to a payment processing network thatis in communication with data processors that process the transactiondata to determine if the transaction should be authorized by thenetwork, and assist in the clearance and account settlement functionsfor the transaction. The authorization decision and clearance andsettlement portions of the transaction may also involve communicationand/or data transfer between the payment processing network and the bankor institution that issued the payment device to the consumer (theIssuer).

Although a consumer payment device may be a credit card or debit card,it may also take the form of a “smart” card or chip. A smart card isgenerally defined as a pocket-sized card (or other portable paymentdevice) that is embedded with a microprocessor and one or more memorychips, or is embedded with one or more memory chips withnon-programmable logic. The microprocessor type card typically canimplement certain data processing functions, such as to add, delete, orotherwise manipulate information stored in a memory location on thecard. In contrast, the memory chip type card (for example, a prepaidphone card) can typically only act as a file to hold data that ismanipulated by a card reading device to perform a pre-defined operation,such as debiting a charge from a pre-established balance stored in thememory. Smart cards, unlike magnetic stripe cards (such as standardcredit cards), can implement a variety of functions and contain avariety of types of information on the card. Therefore, in someapplications they may not require access to remote databases for thepurpose of user authentication or record keeping at the time of atransaction. A smart chip is a semiconductor device that is capable ofperforming most, if not all, of the functions of a smart card, but maybe embedded in another device.

Smart cards or chips come in two general varieties; the contact type andthe contactless type. A contact type smart card or chip is one thatincludes a physical element (e.g., a magnetic stripe) that enablesaccess to the data and functional capabilities of the card, typicallyvia some form of terminal or card reader. A contactless smart card orchip is a device that incorporates a means of communicating with thecard reader or point of sale terminal without the need for directphysical contact. Thus, such devices may effectively be “swiped” (i.e.,waved or otherwise presented in a manner that results in enablingcommunication between the contactless element and a reader or terminal)by passing them close to a card reader or terminal. Contactless cards orchips typically communicate with a card reader or terminal using RF(radio-frequency) technology, wherein proximity to the reader orterminal enables data transfer between the card or chip and the readeror terminal. Contactless cards have found uses in banking and otherapplications, where they have the advantage of not requiring removalfrom a user's wallet or pocket in order to participate in a transaction.A contactless card or chip may be embedded in, or otherwise incorporatedinto, a mobile device such as a mobile phone or personal digitalassistant (PDA). Further, because of the growing interest in such cards,standards have been developed that govern the operation and interfacesfor contactless smart cards, such as the ISO 14443 standard.

In a typical payment transaction, data is sent from a point of saleterminal to the Issuer to authenticate a consumer and obtainauthorization for the transaction. As part of the authentication orauthorization processes, the data may be accessed or processed by otherelements of the transaction processing system (e.g., the merchant'sAcquirer or a payment processor that is part of a payment processingnetwork). Note that in some cases, authorization for the transaction maybe obtained without connecting to the Issuer; this may be permitted byIssuer configured risk management parameters that have been set on theconsumer's payment application or payment device. If the proposedtransaction is authorized, then the consumer may provide otherinformation to the merchant as part of completing the transaction. TheIssuer or data processor may also send data back to the consumer. Suchdata may include an update to records of the transactions for which thepayment device has been used, or to a current balance of an accountassociated with the device.

In the case of a transaction that uses a contactless element, a readeror point of sale terminal is typically only in communication with thecontactless element for a short period of time (e.g., the amount of timeneeded for the element to be recognized by the reader and to providedata needed to initiate or conduct a portion of the transaction). Thismeans that an Issuer or other party wishing to provide transactionrelated data to a consumer's payment device may be unable to effectivelycommunicate with the consumer using the reader or point of saleterminal. This can create problems for a consumer who wishes to use thepayment device for a later transaction, as the balance of a prepaid cardor balance of a credit card or debit card account may be incorrect andaffect the consumer's ability to obtain authorization for the latertransaction. It may also cause a consumer wishing to access theiraccount information to mistakenly think that they have either more orless funds available to them than they actually do.

What is desired is a system, apparatus and method for enablingtransaction data stored on a payment device that utilizes a contactlesssmart chip to be updated without the contactless smart chip needing tocommunicate with a reader or point of sale terminal, and which overcomesthe noted disadvantages of current approaches. Embodiments of theinvention address these problems and other problems individually andcollectively.

BRIEF SUMMARY

Embodiments of the present invention are directed to a system,apparatus, and method for using a contactless element (such as acontactless smart chip) as part of a payment transaction. Specifically,embodiments of the present invention are directed to facilitating theupdate or synchronization of transaction data and transaction recordsstored in a memory that is part of a payment device (such as a mobilephone), where the device includes a contactless element. The inventivesystem, apparatus and method can be implemented using a contactlesssmart chip and a wireless data transfer element (e.g., a near fieldcommunications (NFC) capability, etc.) embedded within a mobile wirelessdevice. The mobile device may be a mobile phone, PDA, MP3 player or thelike. The smart chip or other type of contactless element can beintegrated with the circuitry of the mobile device to permit data storedon the chip to be accessed and manipulated (e.g., read, written, erased)using the wireless communications network as a data transport or commandtransport channel. In this way, transaction data provided by an Issuermay be provided to the payment device in the absence of communicationbetween the payment device and a near field communications device readeror point of sale terminal.

This permits the Issuer to update transaction data and/or synchronizedata or records stored in the payment device with those maintained bythe Issuer when the contactless element is not in the proximity of thedevice reader or terminal. This capability is particularly useful in thecase of a prepaid balance being stored in the payment device, sincewithout an accurate balance, a user may be prevented from completing atransaction that they should be entitled to complete. Similarly, acredit or debit account balance stored in the payment device may beupdated to properly reflect the status of the account in a situationwhere the data stored after interaction between the contactless elementand reader or terminal was incorrect or incomplete.

In one embodiment, the present invention is directed to a mobile devicefor use in conducting a payment transaction, where the mobile deviceincludes a processor, a memory, and a set of instructions stored in thememory, which when executed by the processor implement a method toconduct the payment transaction by communicating with a point of saleterminal using a near field communications mechanism of the mobiledevice, and receive data related to the payment transaction at themobile device using a cellular communications network, wherein thereceived data related to the payment transaction is an update to datastored in the mobile device as a result of communicating with the pointof sale terminal.

In another embodiment, the present invention is directed to a dataprocessing device, where the data processing device includes aprocessor, a memory, and a set of instructions stored in the memory,which when executed by the processor implement a method to receive datafor a payment transaction from a point of sale terminal, wherein atleast some of the data is provided to the point of sale terminal by amobile device that communicates with the point of sale terminal using anear field communications mechanism, process the received data togenerate a record of the transaction, wherein the record of thetransaction includes an update to data stored in the mobile device as aresult of communicating with the point of sale terminal, and provide therecord of the transaction to an element of a wireless communicationssystem, thereby causing the record of the transaction to be provided tothe mobile device over a wireless network.

In yet another embodiment, the present invention is directed to a methodof conducting a payment transaction, where the method includescommunicating with a point of sale terminal using a near fieldcommunications mechanism of a payment device as part of the paymenttransaction, wherein the payment device includes a contactless elementand is contained in a mobile phone, and receiving data to update arecord of the payment transaction contained in the mobile phone using acellular phone communications network.

In yet another embodiment, the present invention is directed to anapparatus for facilitating payment transactions between a plurality ofconsumers and a plurality of merchants, where the apparatus includes aprocessor, a memory, and a set of instructions stored in the memory,which when executed by the processor implement a method to generate afirst pair of encryption keys, the first pair of encryption keysincluding a first encryption key and a second encryption key, generate asecond pair of encryption keys, the second pair of encryption keysincluding a first encryption key and a second encryption key, distributethe first pair of encryption keys to a first mobile gateway, the firstmobile gateway configured to process a first set of paymenttransactions, and distribute the second pair of encryption keys to asecond mobile gateway, the second mobile gateway configured to process asecond set of payment transactions, wherein the first set oftransactions is different from the second set of transactions.

Other objects and advantages of the present invention will be apparentto one of ordinary skill in the art upon review of the detaileddescription of the present invention and the included figures.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram illustrating a transaction processing systemthat may be used with some embodiments of the present invention;

FIG. 2 is a functional block diagram illustrating the primary componentsof a system for updating or synchronizing transaction data for atransaction that uses a contactless element contained within a mobiledevice, in accordance with an embodiment of the present invention;

FIG. 3 is a functional block diagram illustrating the primary componentsof a mobile device, such as a mobile phone that may be used as part ofthe inventive system and method;

FIG. 4 is a flow chart illustrating an embodiment of the inventivemethod or process for updating or synchronizing transaction data for atransaction that uses a contactless element contained within a mobiledevice;

FIGS. 5(a), 5(b), and 5(c) are flow charts illustrating a process fordistributing and using encryption keys to provide secure transfer ofpayment transaction or other data between an Issuer and a mobile device,in accordance with an embodiment of the present invention; and

FIG. 6 is a block diagram of an exemplary computing apparatus that maybe used to implement an embodiment of the inventive method or processfor updating or synchronizing transaction data for a transaction thatuses a contactless element contained within a mobile device.

DETAILED DESCRIPTION

Embodiments of the present invention are directed to a system,apparatus, and method for processing payment transactions that areconducted using a mobile device that includes a contactless element,such as an integrated circuit chip. The invention enables the updating,correction or synchronization of transaction data maintained by anIssuer with that stored on the device. This is accomplished by using awireless (cellular) network as a data communication channel for dataprovided by an Issuer to the mobile device, and is particularlyadvantageous in circumstances in which the contactless element is notpresently capable of communication with a device reader or point of saleterminal that uses a near field communications mechanism. In someembodiments, data transferred between the mobile device and Issuer(i.e., either from the device to the Issuer or from the Issuer to thedevice) may be encrypted and decrypted (e.g., using “keys” such, aspublic key infrastructure (PKI) keys or symmetric keys) to provideadditional security and protect the data from being accessed by otherusers or applications. If encryption keys are used for the encryptionand decryption processes, they may be distributed by a key distributionserver or other suitable entity to a mobile gateway which participatesin the data encryption and decryption operations.

The present invention is typically implemented in the context of apayment transaction; therefore prior to describing one or moreembodiments of the invention in greater detail, a brief discussion ofthe entities involved in processing and authorizing a paymenttransaction, and their roles in the authorization process will bepresented.

FIG. 1 is a block diagram illustrating a transaction processing systemthat may be used with some embodiments of the present invention.Typically, an electronic payment transaction is authorized if theconsumer conducting the transaction is properly authenticated (i.e.,their identity and their valid use of a payment account is verified) andhas sufficient funds or credit to conduct the transaction. Conversely,if there are insufficient funds or credit in the consumer's account, orif the consumer's payment device is on a negative list (e.g., it isindicated as possibly having been stolen), then an electronic paymenttransaction may not be authorized. In the following description, an“Acquirer” is typically a business entity (e.g., a commercial bank) thathas a business relationship with a particular merchant. An “Issuer” istypically a business entity (e.g., a bank) which issues a payment devicesuch as a credit or debit card to a consumer. Some entities may performboth Issuer and Acquirer functions.

FIG. 1 illustrates the primary functional elements that are typicallyinvolved in processing a payment transaction and in the authorizationprocess for such a transaction. As shown in FIG. 1, in a typical paymenttransaction, a consumer wishing to purchase a good or service from amerchant uses a portable consumer payment device 20 to provide paymenttransaction data that may be used as part of an authorization process.Portable consumer payment device 20 may be a debit card, credit card,smart card, mobile device containing a contactless chip, or othersuitable form of device.

The portable consumer payment device is presented to a device reader orpoint of sale (POS) terminal 22 which is able to access data stored onor within the payment device. The account data (as well as any requiredconsumer data) is communicated to the merchant 24 and ultimately to themerchant's transaction/data processing system 26. As part of theauthorization process performed by the merchant, merchant transactionprocessing system 26 may access merchant database 28, which typicallystores data regarding the customer/consumer (as the result of aregistration process with the merchant, for example), the consumer'spayment device, and the consumer's transaction history with themerchant. Merchant transaction processing system 26 typicallycommunicates with Acquirer 30 (which manages the merchant's accounts) aspart of the overall authorization process. Merchant transactionprocessing system 26 and/or Acquirer 30 provide data to PaymentProcessing Network 34, which among other functions, participates in theclearance and settlement processes that are part of the overalltransaction processing. Communication and data transfer between Merchanttransaction processing system 26 and Payment Processing Network 34 istypically by means of an intermediary, such as Acquirer 30. As part ofthe transaction authorization process, Payment Processing Network 34 mayaccess account database 36, which typically contains informationregarding the consumer's account payment history, chargeback ortransaction dispute history, credit worthiness, etc. Payment ProcessingNetwork 34 communicates with Issuer 38 as part of the authorizationprocess, where Issuer 38 is the entity that issued the payment device tothe consumer and manages the consumer's account. Customer or consumeraccount data is typically stored in customer/consumer database 40 whichmay be accessed by Issuer 38 as part of the authentication,authorization or account management processes. Note that instead of, orin addition to being stored in account database 36, consumer accountdata may be included in, or otherwise part of customer/consumer database40.

In standard operation, an authorization request message is createdduring a consumer purchase of a good or service at a point of sale (POS)using a portable consumer payment device (such as a credit or debitcard). In some embodiments, the portable consumer payment device may bea wireless phone that incorporates a contactless card or chip. Thecontactless card or chip may communicate with the point of sale terminalusing a near field communications (NFC) capability. The authorizationrequest message is typically sent from the device reader/POS terminal 22through the merchant's data processing system 26 to the merchant'sAcquirer 30, to a payment processing network 34, and then to an Issuer38. An “authorization request message” can include a request forauthorization to conduct an electronic payment transaction. It mayinclude one or more of an account holder's payment account number,currency code, sale amount, merchant transaction stamp, acceptor city,acceptor state/country, etc. An authorization request message may beprotected using a secure encryption method (e.g., 128-bit SSL orequivalent) in order to prevent data from being compromised.

After the Issuer receives the authorization request message, the Issuerdetermines if the transaction should be authorized and sends anauthorization response message back to the payment processing network toindicate whether or not the current transaction is authorized. Thepayment processing system then forwards the authorization responsemessage to the Acquirer. The Acquirer then sends the response message tothe Merchant. The Merchant is thus made aware of whether the Issuer hasauthorized the transaction, and hence whether the transaction can becompleted.

At a later time, a clearance and settlement process may be conducted byelements of the payment/transaction processing system depicted inFIG. 1. A clearance process involves exchanging financial detailsbetween an Acquirer and an Issuer to facilitate posting a transaction toa consumer's account and reconciling the consumer's settlement position.Clearance and settlement can occur simultaneously or as separateprocesses.

Payment Processing Network 34 may include data processing subsystems,networks, and other means of implementing operations used to support anddeliver authorization services, exception file services, and clearingand settlement services for payment transactions. An exemplary PaymentProcessing Network may include VisaNet. Payment Processing Networks suchas VisaNet are able to process credit card transactions, debit cardtransactions, and other types of commercial transactions. VisaNet, inparticular, includes a VIP system (Visa Integrated Payments system)which processes authorization requests and a Base II system whichperforms transaction clearing and settlement services.

Payment Processing Network 34 may include a server computer. A servercomputer is typically a powerful computer or cluster of computers. Forexample, the server computer can be a large mainframe, a minicomputercluster, or a group of servers functioning as a unit. In one example,the server computer may be a database server coupled to a web server.Payment Processing Network 34 may use any suitable combination of wiredor wireless networks, including the Internet, to permit communicationand data transfer between network elements. Among other functions,Payment Processing Network 34 may be responsible for ensuring that auser is authorized to conduct the transaction (via an authenticationprocess), confirm the identity of a party to a transaction (e.g., viareceipt of a personal identification number), confirm a sufficientbalance or credit line to permit a purchase, or reconcile the amount ofa purchase with the user's account (via entering a record of thetransaction amount, date, etc.).

Consumer payment device 20 may take one of many suitable forms. Asmentioned, the portable consumer device can be a mobile device thatincorporates a contactless element such as a chip for storing paymentdata (e.g., a BIN number, account number, etc.) and a near fieldcommunications (NFC) data transfer element such as an antenna, a lightemitting diode, a laser, etc. The portable consumer device may alsoinclude a keychain device (such as the Speedpass™ commercially availablefrom Exxon-Mobil Corp.), etc. The device containing the contactless cardor chip, or other data storage element may be a cellular (mobile) phone,personal digital assistant (PDA), pager, transponder, or the like. Theportable consumer device may also incorporate the ability to performdebit functions (e.g., a debit card), credit functions (e.g., a creditcard), or stored value functions (e.g., a stored value or prepaid card).

In embodiments of the invention that include a contactless element(which may include a contactless chip and near field communications datatransfer element) embedded within a wireless mobile phone or similardevice, the contactless element can communicate with a Merchant's devicereader or point of sale terminal using a short range communicationmethod, such as a near field communications (NFC) capability. Examplesof such NFC technologies or similar short range communicationstechnologies include ISO standard 14443, RFID, Bluetooth™ and Infra-redcommunications methods.

FIG. 2 is a functional block diagram illustrating the primary componentsof a system 100 for updating or synchronizing transaction data for atransaction that uses a contactless element contained within a mobiledevice, in accordance with an embodiment of the present invention. Asshown in FIG. 1, system 100 includes a mobile device 102 having wirelesscommunications capabilities 122. Mobile device 102 may be a wirelessmobile telephone, PDA, laptop computer, pager, etc. In a typicalembodiment, mobile device 102 is a cell phone, although as noted,implementation of the present invention is not limited to thisembodiment. In the case of a cell phone as the mobile device 102, thedevice includes mobile device (cell phone) circuitry 104 that enablescertain of the telephony functions. Among other functions, mobile devicecircuitry 104 enables mobile device 102 to communicate wirelessly withcellular system (i.e., a wireless carrier) 120 via cellular network 122.

Mobile device 102 further includes a contactless element 106, typicallyimplemented in the form of a semiconductor chip. Contactless element 106may include a secure data storage element 110, although secure datastorage element 110 may also be implemented as a separate element fromcontactless element 106. Contactless element 106 includes a near fieldcommunications (NFC) data transfer (e.g., data transmission) element105, such as an antenna or transducer. Contactless element 106 istypically embedded within and integrated with the elements of mobiledevice 102, and data or control instructions transmitted via cellularnetwork 122 may be exchanged with or applied to contactless element 106by means of contactless element interface 108. Contactless elementinterface 108 functions to permit the exchange of data and/or controlinstructions between mobile device circuitry 104 (and hence the cellularnetwork) and contactless element 106. Thus, contactless element 106 mayinclude data storage capability in the form of a memory or secure datastorage 110 that may be accessed via interface 108 to permit theimplementation of data read, write, and erase functions, for example.

Secure data storage 110 may be used by mobile device 102 to storeoperating parameters or other data utilized in the operation of thedevice. Secure data storage 110 may also be used to store other data forwhich enhanced security is desired, for example, transaction data,personal account data, identification data, authentication data, accesscontrol data for an application or device function, etc. As mentioned,secure data storage 110 may be implemented in the form of a chip that isseparate and apart from contactless element 106, or alternatively, maybe a section of memory in a chip that forms part of contactless element106. Note also that the secure data storage and/or contactless elementcontained within the mobile device may be a removable element or may beintegrated within the mobile device. Examples of removable elementsinclude SIM cards, flash memory cards, and other suitable devices.

Mobile device 102 may also include one or more applications 109, whereapplications 109 are implemented in the form of one or more of software,firmware, or hardware. Applications 109 are used to implement variousfunctions desired by a user, where such functions may include, but arenot limited to, eCommerce transaction operations, transaction paymentoperations, etc. Typically, applications 109 represent processes oroperations that are dedicated to a specific function that provides addedvalue to the user and which are not part of the standard operation ofthe device (i.e., not part of enabling the standard telephony functions,for example). As shown in the figure, applications 109 may exchange datawith secure data storage 110 (via contactless element interface 108) andmay also be capable of exchanging data with mobile device circuitry 104.A typical application 109 for the purposes of the present invention is apayment application that enables a user to make a payment for atransaction, where the transaction is wholly or partially conductedusing the mobile device. In such an example, secure data storage 110 maycontain authentication data, user identification data, transactionrecord data, account balance data, etc. Applications 109 are typicallystored as a set of executable instructions in memory 107, which may alsoinclude data storage 113. A processor accesses memory 107 to load andunload the instructions and data as needed to execute the instructionsand perform the functions of the applications.

Contactless element 106 is capable of transferring and receiving datausing data transfer element 105 which implements a near fieldcommunications capability 112, typically in accordance with astandardized protocol or data transfer mechanism (identified as ISO14443/NFC in the figure). Near field communications capability 112 is ashort-range communications capability; examples include the ISO 14443standard, RFID, Bluetooth™, infra-red, or other data transfer capabilitythat can be used to exchange data between the mobile device 102 and adevice reader or point of sale terminal 130, which is typically locatedat a Merchant's place of business. Thus, mobile device 102 is capable ofcommunicating and transferring data and/or control instructions via bothcellular network 122 and near field communications capability 112.

System 100 further includes Acquirer 132 which is in communication withMerchant or Merchant's device reader or point of sale terminal 130.Acquirer 132 is in communication with Payment Processing Network 134 andas was described, may exchange data with Payment Processing Network 134as part of the transaction authorization process. Payment ProcessingNetwork 134 is also in communication with Issuer 136. As was described,Issuer 136 may exchange data with Payment Processing Network 134 as partof a transaction authorization or transaction reconciliation process.

System 100 may also include Mobile Gateway 138, which is capable ofcoupling the cellular (wireless) network or system to a second network(typically a wireline network such as the Internet) and enabling thetransfer of data between the networks. Mobile Gateway 138 may performdata processing operations as needed to permit the efficient transfer ofdata between the two types of networks, including, but not limited to,data reformatting or other processing to take into account differencesin network protocols. Mobile Gateway 138 may also perform dataprocessing operations to enable more efficient data transfer between thenetworks and devices coupled to each type of network, such as forpurposes of improving the ability of a user to utilize the received dataon a mobile device. As shown in the figure, in some embodiments, MobileGateway 138 is coupled to Payment Processing Network 134, which iscoupled to Acquirer 130. Note that other embodiments are possible, suchas where Mobile Gateway 138 is coupled to Issuer 136, as well as whereAcquirer 130 is coupled to Issuer 136. Similarly, Issuer 136 may includethe capability of functioning as Mobile Gateway 138.

System 100 may also include Encryption Key Distribution Server 140 whichis capable of communication and data transfer with Mobile Gateway 138and Issuer 136. As will be described, Encryption Key Distribution Server140 may be used to distribute encryption keys to Mobile Gateway 138 andIssuer 136 for the purpose of enabling the encryption and decryption oftransaction data that is transferred between the Issuer and the mobiledevice.

In some embodiments, payment processing network 134 may be configured toenable the transport of encrypted data; if so, then Encryption KeyDistribution Server 140 may be capable of communication with paymentprocessing network 134 for the purpose of distributing an encryption keyto an element of that network (as suggested by the non-solid lineconnecting Key Server 140 to network 134). If payment processing network134 is not configured to enable transport of encrypted data, then thedata encryption/decryption processes may be performed in Mobile Gateway138 in accordance with the encryption key(s) distributed by EncryptionKey Distribution Server 140. Note that Issuer 136 may communicate withEncryption Key Distribution Server 140 to inform server 140 which ofseveral mobile gateways it authorizes for purposes of communicating withmobile device 102, and hence to which mobile gateway a particular set ofencryption keys should be distributed. Thus, Issuer 136 may select whichof multiple available mobile gateways it chooses to authorize forpurposes of communicating and exchanging transaction data with aparticular mobile device.

Inventive system 100 provides an efficient way for a user to conduct apayment transaction using a contactless element. By integrating thecontactless element with the mobile device's telephony communicationscapabilities, the cellular network may be used as a data transferchannel between an Issuer or Payment Processing Network element and theuser's mobile device. In some embodiments, this arrangement may be usedto facilitate the provision of data to the device for the purpose ofsynchronizing the transaction or account data stored in the mobiledevice with the data records maintained by the Issuer. Such data mayinclude authentication and account management data, such as transactionrecords or account balances. For example, a secure data store (e.g.,secure data storage 110 or a similar secure memory region that is partof the mobile device or the contactless element) may contain transactionrecords and a running total of the balance available for a user'saccount. In the case of the contactless element being used with aprepaid card or account, the balance would reflect the remaining amountof money available to a user. In the case of the contactless elementbeing used with a credit or debit account, the balance would reflect aremaining credit limit or amount available from the debit account.

Embodiments of the present invention provide a mechanism for reconcilingthe data for the transaction records and/or account balances stored inthe secure memory (or other data storage element) of the mobile devicewith that maintained by an Issuer. This ability is desirable (and may benecessary) when a contactless element is used for a transaction. This isbecause a contactless element is typically used as part of initiating atransaction, and to provide authentication, account identification, andaccount balance data to a Merchant. The contactless element is thentypically removed from communication with the device reader or point ofsale terminal. As a result, the contactless element is not available forlater communication with the Issuer using the device reader or terminalto update, synchronize, or reconcile transaction records. However, asrecognized by the inventors, such updating, synchronizing, orreconciling is desirable and can be accomplished by using the cellularnetwork as a data transport mechanism between the Issuer (via MobileGateway 138, for example) and the mobile device.

In embodiments of the present invention, mobile device 102 may be anydevice capable of communication and data transfer with a cellularnetwork and a near field communication system. As noted, one example isa mobile wireless phone. FIG. 3 is a functional block diagramillustrating the primary components of a portable consumer device (e.g.,element 102 of FIG. 2), such as a mobile phone that may be used as partof the inventive system and method. As illustrated in FIG. 3, mobiledevice 302 may include circuitry that is used to enable certaintelephony and other device functions. The functional elementsresponsible for enabling those functions may include a processor 304 forexecuting instructions that implement the functions and operations ofthe device. Processor 304 may access data storage 312 (or anothersuitable memory region or element) to retrieve instructions or data usedin executing the instructions. Data input/output elements 308 may beused to enable a user to input data (via a microphone or keyboard, forexample) or receive output data (via a speaker, for example). Display306 may also be used to output data to a user. Communications element310 may be used to enable data transfer between device 302 and awireless network (via antenna 318, for example) to assist in enablingtelephony and data transfer functions. As described with reference toFIG. 2, device 302 may also include contactless element interface 314 toenable data transfer between contactless element 316 and other elementsof the device, where contactless element 316 may include a secure memoryand a near field communications data transfer element.

Data storage 312 may be a memory that stores data, and may be in anysuitable form including a magnetic stripe, a memory chip, etc. Thememory may be used to store data such as user identification orauthentication information, user account information, transaction data,etc. Stored financial information may include information such as bankaccount information, bank identification number (BIN), credit or debitcard account number information, account balance information, expirationdate, consumer information such as name, date of birth, etc. Note thatsuch data may instead, or also be stored in a secure data storageelement, such as secure data storage 110 of FIG. 2 or a similar securememory that is part of contactless element 316. As described, datastorage 312 may also contain instructions which when executed byprocessor 304 implement operations or processes that are part of theoperation of the device.

FIG. 4 is a flowchart illustrating an embodiment of the inventive methodor process for updating or synchronizing transaction data for atransaction that uses a contactless element contained within a mobiledevice. The process steps or stages illustrated in the figure may beimplemented as an independent routine or process, or as part of a largerroutine or process. Note that each process step or stage depicted may beimplemented as an apparatus that includes a processor executing a set ofinstructions, a method, or a system, among other embodiments.

As shown in the figure, a payment device is used to provide payment fora transaction. Depending on the transaction, the payment device may beused to conduct (or otherwise participate in) a transaction as a resultof communication between the payment device and a Merchant device readeror point of sale terminal (stage 402, and as depicted, for example, byelement 130 of FIG. 2). The payment device may be a mobile wirelessphone or similar device that includes a contactless element, for example(as depicted, for example, by element 102 of FIG. 2 or element 302 ofFIG. 3). As discussed, the contactless element is capable ofcommunication and data transfer using a near field communicationscapability. The transaction may be conducted by passing the paymentdevice near the device reader or point of sale terminal to permit thepayment device and reader or terminal to establish communications andexchange data.

At stage 404 data stored in the payment device is provided to the devicereader or point of sale terminal. The data may include useridentification data, account data, or other data required by a Merchantto authenticate a user and permit the user to initiate or participate ina transaction. Following any needed processing of the provided data bythe Merchant, Acquirer (element 132 of FIG. 2), Issuer (element 136 ofFIG. 2), or other element(s) of the payment processing system,transaction data may be transferred to the payment device and stored inthe memory of the payment device (as depicted in stage 406). In someembodiments, the data is transferred to the device using the near fieldcommunications capability of the contactless element and may be storedin the secure data space or other data storage element of the device (asdepicted, for example, by element 110 or 113 of FIG. 2, or element 312or 316 of FIG. 3). The transferred data may include, for example, arecord of the transaction, an update to an account balance based on thecharacteristics of the transaction, an update to the balance of aprepaid card, etc. Note that this step is optional and may not occur forevery transaction as the payment device may not be in communication withthe device reader/POS terminal for a sufficient period of time to permitthe data or the entire set of data to be transferred. In such asituation, the near field communications capability is used to engage ina transaction, but may not be available to transfer transaction relateddata from the Merchant, Acquirer or Issuer to the payment device.

Communication and data transfer between the payment device and thedevice reader or point of sale terminal is then ended (stage 408),typically because the payment device is out of range and no longercapable of communicating with the device reader or terminal using thenear field communications capability. This may occur, for example,because the payment device is only momentarily positioned near enough tothe device reader or terminal to permit effective communication and datatransfer (e.g., it is only momentarily “swiped” or presented nearby thedevice reader or terminal). At a later time, after the payment device isno longer in communication with the device reader or point of saleterminal, the cellular network (as depicted by elements 120 and/or 122of FIG. 2) is used to provide data to the payment device, where thatdata may then be stored in a secure data space or other memory locationwithin the device (stage 410).

The data provided over the cellular network to the payment device mayinclude, for example, data used to complete the records for atransaction. Such records might be used to update the data stored in thedevice to reflect the final amount of a transaction, provideidentification data for a transaction, provide a receipt or warrantyinformation for a transaction, update the balance of an account as aresult of the completion of the transaction, etc. Note that some or allof the data provided over the cellular network may not have beenavailable until completion of the transaction, at which time the paymentdevice (e.g., a mobile phone or other device in which a contactlesselement is embedded) may not have been in communication with, or capableof communication with, the device reader or point of sale terminal bymeans of a near field communications mechanism.

The following is an example of a typical use case or scenario in whichembodiments of the inventive system, apparatus and methods may be used.It is noted that the use case is only exemplary, as other use cases orscenarios are possible and will be evident to those of skill in the art.

In one use case or scenario, a counter or “accumulator” for acontactless element embedded in a mobile phone can be updated using thecellular network, after a contactless transaction is initiated using thenear field communications capability. Such a counter or accumulator maybe used to keep track of an account balance or prepaid account funds,for example. In another example, if there is a problem with atransaction, an Issuer can synchronize the data stored in thecontactless device with its own transaction information using thecellular network. For example, a consumer might wish to purchase $75worth of gas using a mobile phone that includes a prepaid card type offunctionality as part of the contactless element. In such a transaction,$75 may be deducted from the prepaid card balance and that data may bestored in a memory in the phone. However, in actuality, the gas pump maystop at $50, because the gas pump stopped working, the consumer couldonly fill their tank up to $50, etc. In this case, the consumer'sprepaid card or balance would show a $75 debit even though thetransaction was only for the amount of $50. However, using the cellularnetwork as a communications channel, the Issuer is able to update thetransaction records stored in the phone so that the data in the phone'smemory (e.g., the secure memory region of the contactless element oranother suitable data storage region of the phone) reflects the actualtransaction information. This capability can be very important insituations where the balance of an account (as reflected by the datastored in the phone) is used to determine whether a later transaction isauthorized.

To provide additional security for the transaction data transferredbetween the mobile device and the Issuer or Payment Processing Network,embodiments of the present invention may include the capability toencrypt and decrypt the transaction data. This is desirable asencrypting the transaction data may prevent unauthorized users orapplications from accessing the data, either on the phone or while thedata is in transit over a communications network. As will be described,the distribution of encryption keys or access codes for use inencrypting, decrypting, or otherwise accessing transaction data may becontrolled by an Issuer, payment processor, or other suitable entitythat is part of a payment processing system. This enables the Issuer orpayment processor, for example, to determine which mobile gateways areauthorized for transferring or processing payment transaction data. Italso provides an Issuer or payment processor with a mechanism forsegmenting the data transfer or processing tasks performed by a mobilegateway. The segmentation may be based on a characteristic of thetransaction (transaction type (such as debit, credit, prepaid, goods,service), amount (above or below a threshold) or originating location),a characteristic of the consumer (credit history, transaction history,account profile), or a characteristic of the data processing system(processing load, processing or security capabilities of a mobilegateway, etc.).

FIGS. 5(a), 5(b), and 5(c) are flow charts illustrating a process fordistributing and using encryption keys to provide secure transfer ofpayment transaction or other data between an Issuer and a mobile device,in accordance with an embodiment of the present invention. The processsteps or stages illustrated in the figures may be implemented as anindependent routine or process, or as part of a larger routine orprocess. Note that each process step or stage depicted may beimplemented as an apparatus that includes a processor executing a set ofinstructions, a method, or a system, among other embodiments. Theapparatus may be an encryption key distribution server (such as element140 of FIG. 2, which may be implemented as part of another element of apayment processing system), a payment processor, or another suitableelement of a data processing or payment processing system. Further,although the encryption and decryption process described with referenceto FIGS. 5(a), 5(b), and 5(c) use encryption keys, other encryptionmethods or security techniques (such as access codes, etc.) may be usedin implementing embodiments of the present invention and are understoodto be included within the description of the invention contained herein.

FIG. 5(a) illustrates the stages involved in a process for an encryptionkey distribution server (e.g., element 140 of FIG. 2) to distribute anencryption key of a first key pair to a mobile gateway. FIG. 5(b)illustrates the stages involved in a process for using the encryptionkey server to distribute an encryption key of a second key pair to anIssuer. FIG. 5(c) illustrates the stages involved in a process for usingthe encryption keys distributed to the mobile gateway and to the Issuerto encrypt data generated by the Issuer in the mobile gateway fortransmission to the mobile device, and to decrypt that data in themobile device. As will be described, in some embodiments, the encryptionand decryption processes used to enable enhanced data security dependupon the use of a pair of “keys” which are used in accordance with anaccepted encryption or data security protocol (e.g., symmetric keystandards and protocols), although other suitable methods or processes(such as the public key infrastructure (PKI) standards and protocols)may also be used.

As shown in FIG. 5(a), at stage 502 an encryption key server (e.g.,element 140 of FIG. 2) is used to distribute a first encryption key pair(or more precisely, a key of a first encryption key pair) to a mobilegateway that will participate in the encryption/decryption processes.Note that the keys can be generated within the encryption key server orprovided to the server by another entity, such as an authorized dataprocessor, Issuer, payment processor, or element of a data processingnetwork. Note that the process described with reference to FIG. 5(a) isperformed for each mobile gateway that will be used in the transfer oftransaction data between the mobile payment device and the paymentprocessing network.

Further, each encryption key pair distributed in accordance with theprocess depicted in FIG. 5(a) can be associated with a specific mobilegateway, so that a different encryption key pair may be used for datatransferred via each such gateway, eCommerce server, etc., and a mobiledevice. This arrangement may allow an Issuer or payment processor (forexample) to specify which of multiple mobile gateways is authorized toprovide communications and data transfer capabilities for a specificmobile device, group of devices, Issuer, or type of transaction, forexample. It also permits an Issuer or payment processor (for example) tobe the entity responsible for authenticating a mobile gateway andthereby control which of multiple mobile gateways is a valid one forprocessing a specified type of transaction, for processing transactiondata for a specified group of consumers, for processing transaction datarequiring a specific security level, etc. Among other benefits, thispermits an Issuer or payment processor to verify the security or statusof a mobile gateway, thereby providing protection for consumers andmerchants. For example, an Issuer or payment processor may desire tosegment the processing of transactions based on the type of transactionor a characteristic of a transaction (e.g., debit, credit, prepaid, arange of transaction amounts, a region or time zone in whichtransactions are originated, etc.), or based on a characteristic of theconsumer or mobile device responsible for originating the transaction(e.g., a credit rating of the consumer, the configuration of the mobiledevice, the type or class of payment application or payment device,etc.). The segmentation of the processing of transactions among multiplemobile gateways may enable the Issuer or payment processor to bettertrack usage patterns of a payment device contained in the mobile device,dynamically or statically configure the data processing load as neededto achieve a desired load balancing among transaction data provided bymultiple mobile gateways, or provide a different level of qualitycontrol, fraud detection, or value-added service for a group ofconsumers, payment devices, or type of transactions.

Continuing with the description of FIG. 5(a), at stage 504, theencryption key server provides one key of the first key pair to thedesired mobile gateway (element 138 of FIG. 2, for example). Asmentioned, a different pair of encryption keys may be utilized for eachdifferent mobile gateway or server that is, or may be, participating ina transaction process. A record of the encryption key pair used for eachsuch mobile gateway or server would typically be maintained by theencryption key server or an entity responsible for operating theencryption key server. As noted, one key of the first encryption keypair is stored in the mobile gateway (stage 504), while the second keyof the first key pair is stored in the encryption key server (stage506).

FIG. 5(b) illustrates the stages involved in a process for using theencryption key server to distribute an encryption key of a second keypair to an Issuer. Note that the keys can be generated within theencryption key server or provided to the server by another entity, suchas an authorized data processor, Issuer, payment processor, or elementof a data processing network. Note that the process described withreference to FIG. 5(b) is performed for each Issuer.

At stage 508, the encryption key server begins the process ofdistributing a key of a second key pair to an Issuer. One key of thesecond key pair is provided to the Issuer (stage 510) and the other keyof the second key pair is stored in the encryption key server (stage514). The Issuer uses the received key of the second key pair togenerate a unique key (or other form of access control data) for eachmobile payment device that is registered with the Issuer (stage 512). Aswill be described, this unique key will be distributed to the mobilepayment device and used to decrypt transaction data provided to thedevice as part of an update of the transaction data stored in thedevice, or as part of a transaction or account record stored in thedevice. Note that the unique key provided to the mobile device may alsobe used to encrypt data that is generated by the device or the paymentapplication installed in the device for secure transfer to an Issuer orother entity.

FIG. 5(c) illustrates the stages involved in a process for using theencryption keys distributed to the mobile gateway and to the Issuer toencrypt data generated by the Issuer in the mobile gateway fortransmission to the mobile device, and to decrypt that data in themobile device. Note that the process or method described with referenceto FIG. 5(c) may be performed for each transaction. At stage 522, amobile device initiates a payment transaction by interacting with adevice reader or point of sale terminal (e.g., element 130 of FIG. 2).As part of the transaction process, the Acquirer (e.g., element 132 ofFIG. 2) provides transaction data to the Payment Processing Network(e.g., element 134 of FIG. 2) and ultimately to the Issuer (e.g.,element 136 of FIG. 2) at stage 524, typically as a result ofcommunication between the Payment Processing Network and the Issuer.

The Issuer processes the transaction data and generates updatedtransaction data which is intended to be provided to the mobile device.The generated data may be for example, in the form of transactionrecords, updates or corrections to an account balance, etc. Thus, theprocess described with reference to FIG. 5(c) may be used for example,as part of the process described with reference to FIG. 4 (e.g., toexchange or update transaction related data as part of a transactionquery, update or reconciliation process performed by the Issuer). Thegenerated data is provided to the Payment Processing Network at stage526. Note that in some embodiments, and depending upon thecommunications network or connections being used, the generated data mayinstead be provided directly to the mobile gateway.

If there is no direct connection between the Issuer and mobile gateway,then the generated data provided to the Payment Processing Network isprovided to the mobile gateway. The mobile gateway connects to theencryption key server and to the mobile device (stage 528). At stage530, the encryption key server generates a session specific key from thestored key of the first key pair. The encryption key server thengenerates the unique key for the mobile device using the stored key ofthe second key pair (stage 532). The encryption key server then encryptsthe generated session key using the unique key for the mobile device(stage 532). The encryption key server then distributes the encryptedsession key to the mobile device via the mobile gateway (stage 534). Themobile device receives the encrypted session key, recovers the sessionkey using its unique key, and then uses the session key to decrypt thetransaction data it received from the mobile gateway (stage 536). Thedecrypted data is then made available to the payment applicationresident on the mobile device for processing, storage, display to theuser, or another relevant function. The decrypted data may be stored ina secure data storage medium or other suitable element.

Note that the process of FIG. 5 has been described with reference todistributing a key of an encryption key pair to a mobile gateway forstorage in the gateway—this enables the gateway to encrypt and decryptdata that passes through the gateway. In some embodiments, one key of apair may be distributed from the encryption key server to the Issuer toenable the Issuer to perform some or all of the data encryption anddecryption operations. Similarly, one key of a pair may be distributedfrom the encryption key server to an element of the payment processingnetwork (element 134 of FIG. 2, as suggested by the dot/dash line in thefigure). In such embodiments, the element of the payment processingnetwork (such as a payment processor) may perform some or all of thedata encryption and decryption operations. Note also that as mentioned,even if the Issuer does not perform the data encryption/decryptionprocesses, the Issuer may be involved in the encryption key distributionprocess by communicating with the encryption key distribution server tovalidate an encryption key, determine which encryption keys aredistributed to which mobile gateways, authenticate a mobile gateway,assign a security level to a mobile gateway, etc.

After distribution of the encryption/decryption keys, the keys may beused to provide a secure method of exchanging transaction data betweenthe mobile device and the Issuer. In some embodiments, this may involveestablishing a secure channel between a payment application resident inthe mobile device and the mobile gateway, with the gateway acting as anintermediary between the mobile device and the payment processingnetwork (and hence the Issuer by virtue of the Issuer's communicationwith the payment processing network). Typically, the exchange oftransaction data may involve two paths: (1) data generated in the mobiledevice for transfer to the payment processing network; and (2) datagenerated by the Issuer for transfer to the mobile device.

As mentioned, an encryption key may be used to encrypt data generated inthe mobile device for transmission, and to decrypt that data in themobile gateway for use by an element of the payment processing networkor the Issuer. In this use case, payment application data generated bythe mobile device is encrypted using a key provided to the mobiledevice. The encryption process may occur within the secure data storageunder the control of the payment application, or by another suitableprocess. The encrypted data may include security or access data, paymentaccount data (account identifiers, account balances, etc.), transactiondata, user identification data, etc. The encrypted data is transmittedfrom the mobile device over the cellular network to the cellular systemand then to the mobile gateway. The mobile gateway uses a key stored inthe gateway to decrypt the received data so that the data may beprovided to the payment processing network and the Issuer. Note thatthis process of encrypting data generated in the mobile device fortransfer to the payment processing network or Issuer may be used as partof the process described with reference to FIG. 4 (e.g., to transfertransaction related data as part of a transaction query, update orreconciliation process). However, this process may also be used insituations other than those described with reference to FIG. 4, such asto provide a secure data exchange between a mobile device and a paymentprocessing network or Issuer using a wireless/cellular network, for thepurpose of initiating or otherwise conducting a payment transaction.

Note that in the context of the Issuer providing transaction data viathe wireless network to update or correct data stored in the mobiledevice after the device is no longer in communication with a devicereader or point of sale terminal, the process, functions, or operationsof described would typically be utilized to provide data security. Theprocess, functions, or operations described may also be used to transferdata from the mobile device to the payment processing network in thecontext of initiating a transaction or performing another function overthe wireless network. However, as previously described, a transactionmay also be initiated using the near field communications capability ofthe contactless element contained in the mobile device.

FIG. 6 is a block diagram of an exemplary computing apparatus that maybe used to implement an embodiment of the inventive method or processfor updating or synchronizing transaction data for a transaction thatuses a contactless element contained within a mobile device. Theelements of the computing apparatus illustrated in FIG. 6 may be used toimplement the inventive processes, methods, or operations in whole or inpart, and may be part of a server or other computing apparatus (e.g., amobile gateway, an Issuer managed server, etc.). The subsystems shown inFIG. 6 are interconnected via a system bus 600. Additional subsystemssuch as a printer 610, keyboard 620, fixed disk 630 (or other memorycomprising computer readable media), monitor 640, which is coupled todisplay adapter 650, and others are shown. Peripherals and input/output(I/O) devices, which couple to I/O controller 660, can be connected tothe computer system by any number of means known in the art, such asserial port 670. For example, serial port 670 or external interface 680can be used to connect the computer apparatus to a wide area networksuch as the Internet, a mouse input device, or a scanner. Theinterconnection via system bus allows the central processor 690 tocommunicate with each subsystem and to control the execution ofinstructions from system memory 695 or the fixed disk 630, as well asthe exchange of information between subsystems. The system memory 695and/or the fixed disk 630 may embody a computer readable medium.

In accordance with embodiments of the present invention, there have beendescribed a system, apparatuses, and methods for enabling use of amobile device that includes a contactless element in a paymenttransaction. The contactless element is embedded within a mobile devicethat is capable of communication and data transfer over a cellularnetwork and using a near field communications capability. Thecontactless element may include a secure data storage region that isused to store transaction data, account data, etc. The cellular networkis used to provide an over the air update or reconciliation oftransaction data stored in the mobile device in situations in which atransaction was initiated using the contactless element and a near fieldcommunications mechanism, but the mobile device is no longer capable ofsuch communication.

It should be understood that the present invention as described abovecan be implemented in the form of control logic using computer softwarein a modular or integrated manner. Based on the disclosure and teachingsprovided herein, a person of ordinary skill in the art will know andappreciate other ways and/or methods to implement the present inventionusing hardware and a combination of hardware and software

Any of the software components or functions described in thisapplication, may be implemented as software code to be executed by aprocessor using any suitable computer language such as, for example,Java, C++ or Perl using, for example, conventional or object-orientedtechniques. The software code may be stored as a series of instructions,or commands on a computer readable medium, such as a random accessmemory (RAM), a read only memory (ROM), a magnetic medium such as ahard-drive or a floppy disk, or an optical medium such as a CD-ROM. Anysuch computer readable medium may reside on or within a singlecomputational apparatus, and may be present on or within differentcomputational apparatuses within a system or network.

While certain exemplary embodiments have been described in detail andshown in the accompanying drawings, it is to be understood that suchembodiments are merely illustrative of and not intended to berestrictive of the broad invention, and that this invention is not to belimited to the specific arrangements and constructions shown anddescribed, since various other modifications may occur to those withordinary skill in the art.

As used herein, the use of “a”, “an” or “the” is intended to mean “atleast one”, unless specifically indicated to the contrary.

What is claimed is:
 1. A mobile device for use in conducting a paymenttransaction, comprising: a processor; a computer readable memory; and aset of instructions stored in the computer readable memory, which whenexecuted by the processor implement a method comprising: conducting thepayment transaction by communicating with a point of sale terminal overa first communication channel using a contactless element in the mobiledevice, and adjusting an accumulator stored in the mobile device by aninitial transaction amount of the payment transaction; receiving anencryption key to be used for encrypting and decrypting transaction dataover a second communication channel from a mobile gateway associatedwith an encryption key server in response to conducting the paymenttransaction, the encryption key being generated by the encryption keyserver based on a request associated with the payment transaction, thesecond communication channel being different than the firstcommunication channel, and the second communication channel utilizing acellular communications network; receiving encrypted data related to thepayment transaction in response to conducting the payment transaction,the encrypted data comprising an actual transaction amount at the mobiledevice through the second communication channel after communicating withthe point of sale terminal, wherein the actual transaction amount of thepayment transaction is determined by the point of sale terminalmodifying the initial transaction amount of the payment transaction;decrypting the encrypted data related to the payment transaction usingthe encryption key; and updating the accumulator stored in the mobiledevice using the decrypted data related to the payment transaction, thedecrypted data comprising the actual transaction amount of the paymenttransaction such that the accumulator is adjusted by the differencebetween the actual transaction amount of the payment transaction and theinitial transaction amount of the payment transaction.
 2. The mobiledevice of claim 1, wherein the mobile device is a mobile wireless phone.3. The mobile device of claim 1, wherein the accumulator is associatedwith an account, which is one of a prepaid account, a credit account, ora debit account.
 4. A method of conducting a payment transaction,comprising: communicating, by a mobile device, with a point of saleterminal over a first communication channel using a contactless elementin the mobile device as part of the payment transaction, and adjustingan accumulator stored in the mobile device by an initial transactionamount of the payment transaction; receiving an encryption key to beused for encrypting and decrypting transaction data over a secondcommunication channel from a mobile gateway associated with anencryption key server in response to conducting the payment transaction,the encryption key being generated by the encryption key server based ona request associated with the payment transaction, the secondcommunication channel being different than the first communicationchannel, and the second communication channel utilizing a cellularcommunications network; receiving, by the mobile device through thesecond communication channel after communicating with the point of saleterminal, encrypted data related to the payment transaction in responseto conducting the payment transaction, the encrypted data comprising anactual transaction amount, wherein the actual transaction amount of thepayment transaction is determined by the point of sale terminalmodifying the initial transaction amount of the payment transaction;decrypting the encrypted data related to the payment transaction usingthe encryption key; and updating the accumulator with the decrypted datarelated to the payment transaction, the decrypted data comprising theactual transaction amount of the payment transaction such that theaccumulator is adjusted by the difference between the actual transactionamount of the payment transaction and the initial transaction amount ofthe payment transaction.
 5. The method of claim 4, wherein thecontactless element includes a secure memory storage region and a recordof the payment transaction is stored in that region.
 6. The method ofclaim 4, wherein the payment transaction is a prepaid transaction. 7.The method of claim 4, wherein the encrypted data is decrypted within asecure memory region of the contactless element.
 8. The method of claim4, wherein the encryption key server provides a second key correspondingto the encryption key provided to the mobile device to the mobilegateway for the mobile gateway to use in encrypting transaction data tobe communicated to the mobile device, and in decrypting transaction datacommunicated from the mobile device.
 9. The method of claim 4, wherein apayment processor computer receives data for the payment transactionfrom the point of sale terminal, processes the received data to generatea record of the transaction and provides the record of the transactionto the mobile device via the mobile gateway.
 10. The method of claim 9,wherein the payment processor computer is configured to process paymenttransaction data for one or more of a credit, debit, or prepaid account,and wherein the record of the transaction includes a balance for thecredit, debit, or prepaid account.
 11. The method of claim 4 wherein theencrypted data is received from the mobile gateway.
 12. The method ofclaim 11 wherein the mobile gateway is in communication with a paymentprocessing network, which is in communication with an issuer of apayment account used to conduct the transaction.
 13. The method of claim12 wherein the payment processing network is in communication with anacquirer.
 14. The method of claim 13 wherein the acquirer is incommunication with the point of sale terminal.
 15. The method of claim14 wherein the point of sale terminal generates an authorization requestmessage which is sent to the acquirer, the payment processing network,and the issuer, and wherein the issuer then sends an authorizationresponse message back to the point of sale terminal via the paymentprocessing network and the acquirer.
 16. The method of claim 4 whereinthe encrypted data is received from the mobile gateway, which performsdata formatting between two different networks.
 17. The method of claim16 wherein the two different networks include a cellular network and apayment processing network.
 18. The method of claim 17 wherein thepayment processing network is between an issuer of an account associatedwith the mobile device and an acquirer.
 19. The method of claim 18wherein the account is a credit card account.
 20. The method of claim 16wherein the mobile gateway is one of a plurality of mobile gateways andwherein the mobile gateway is selected based on a characteristic of thepayment transaction.
 21. The method of claim 20 wherein thecharacteristic of the payment transaction includes at least one of atransaction type, transaction amount, consumer characteristic, andcharacteristic of a data processing system.
 22. The method of claim 4wherein the encryption key server provides a second key corresponding tothe encryption key provided to the mobile device to the mobile gateway,wherein the mobile gateway is configured to use the second key inencrypting transaction data to be communicated to the mobile device andin decrypting transaction data communicated from the mobile device.